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Advantages Small Businesses Have Over Large Corporations

Big name corporations carry prestige and often have hundreds or thousands of applicants for open job roles in their organization. With annual revenue for large companies in the millions and billions, it may seem impossible to compete with these giants. However, small businesses have several advantages to attracting talent and achieving growth that money alone cannot buy. Here are advantages small businesses have over large corporations in hiring and growing.

Advantages Small Businesses Have

  • Agile operations
  • Teamwork
  • Less red tape
  • Personal Relationships
  • Recognition of Hard Work

Agile Operations

You most likely will not have a department budget of multi-millions, but a major benefit of a small business is the ability to pivot and carry out new initiatives. Agile small businesses can adapt to market shifts and dips. Being able to adapt to changing conditions is particularly helpful right now, so this is a key advantage to being able to grow.


At a large company with hundreds of employees, things may inevitably fall through the cracks. When you work at a small business, you have a close-knit team to support you. Communication is typically easier, so it is less likely that you will fumble the ball when working within your team. A well-oiled team in a small business can rival even the largest of corporate teams in productivity.

Less Red Tape

If you have ever worked a corporate job, you know how long things can take to get approval, even for minor improvements. Instead of waiting months or even years for a simple change in procedure, small businesses can adjust their operations on a dime. Is there a step in the sales process that repeats itself and wastes time? This can be solved almost instantly, rather than waiting on your supervisor to propose the change to their supervisor who then brings it up at the managers’ meeting, etc.

Personal Relationships

Studies repeatedly show that happier employees are more efficient. So, this small business advantage is both good for the team and the bottom line. When you work at a small business, you know all of your coworkers, and you probably know a lot of your customers as well. These personal relationships go a long way in employee happiness and customer happiness. As we all know, customer satisfaction drives business growth.

Recognition of Hard Work

It feels so special to see your business grow as an entrepreneur, and when you work for a small business you often feel a similar sense of pride and accomplishment. Having a great year for the business feels personal when you have a pivotal role in the company. Maybe the social media post recognizing you for your three year work anniversary only reaches 300 people instead of thousands. The real employee recognition comes from the people that matter who know exactly how hard you worked to achieve growth. Further, at a small business you don’t have to worry about your CEO earning 351 times more than you make. Massive income disparity may be common at a large organization, but when you know all your coworkers by name, it will be obvious if the boss comes into work in a new Rolls Royce.

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Advantages Small Businesses Have Compared to Large Companies

One of the obvious disadvantages of small businesses is the amount of cash on hand they have at any given moment. Large corporations have massive funding lines through large banking partnerships. A small business may have a line of credit or a small business loan, but these funding options will be limited compared to large companies. It takes money to make money, so even with all the advantages of running a lean and mean team, you may need cold, hard cash to purchase supplies or invest in marketing. This is where small business financing options like accounts receivable financing can be a massive help.

Accounts Receivable Financing to Keep Advantages Small Businesses Have

Accounts receivable funding or A/R funding advances payment on your open invoices when you sell on credit terms. This means that your business gets paid immediately rather than waiting the 30 or 60 days for your customer to pay. This can ensure your payroll is on time every month. You have the working capital to fulfill new or larger purchase orders. The new idea that your team came up with can be implemented immediately. A/R financing is a small business growth tool that is debt-free and easy to qualify for small business owners. There are many advantages small businesses have over corporations when it comes to retaining quality employees or growing. Financing is not typically one of them, but accounts receivable based financing can level the playing field.

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